October 10th.
During the last few years,problems with rent increases around New Zealand has had a serious effect on households to rent a decent and affordable home.The majority of cases before the Tenancy Tribunal are for rent arrears.
There has to be a means of ensuring affordability and security of tenure,which raises the issue of rent controls.Rent controls usually means that the rent can only increase at the rate of inflation or if the landlord has made major improvements to the property.
Rent controls can support security of tenure,a big issue in New Zealand today and contain the leavers and frequency of rent increases.
Critics of rent control and regulation claim that such measures produce inefficiencies,and reduce the housing supply and encourages lack of maintenance.In other countries like New Zealand,rent regulation has had favourable effects and benefits for both landlords and tenants,it has created a better understanding for both parties .
As more and more New Zealanders are renting and it is the future despite the words of politicians who don't seem to take that message on board.Rent controls will kick in as taxpayer's will question the subsidy paid to landlords to the tune of $3 billion every year,there are only around 380,000 private landlords in New Zealand.
This is another reason that a building programme must start sooner rather than later,at least the taxpayer will have an asset for the public good and not the private good.
